As traders, one of the biggest challenges we face is deciding what factors to consider when opening a trade: should we base ourselves on charts, news, macroeconomic data?
Many opt for a combination of all these elements, and although all traders go through the same stages, there are different routes to success. The problem with following the crowd is that you end up doing exactly what everyone else is doing.
Most traders follow the news, analyze the data and then compare them with the charts to try to determine the best entry point. And as if that were not enough, they often seek the opinion of other online traders to confirm their decision. However, consulting the opinions of others can be counterproductive, as they can alter, for better or worse, any personal opinion about the analysis we are conducting.
We always tend to think that others know more than us and that if they think differently, it must be for some reason and that we will not be the ones who are right.
This is just another example of market psychology and the human tendency to always follow the crowd, regardless of whether it is right or not.
I believe that in order to make a living from trading, research must start with yourself, it is essential. Therefore, the solution will be to forge your own path, with all the challenges this entails.
#trading #Psycotrading